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4 pts We have traditionally used one overhead application rate to apply overhead to our jobs. For the upcoming year, we estimated total overhead of

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4 pts We have traditionally used one overhead application rate to apply overhead to our jobs. For the upcoming year, we estimated total overhead of $1,000,000 and we estimated total direct labor hours of 4,000. We will spend 2,200 of those labor hours making our Standard Unit and 1,800 of those labor hours making our Deluxe Unit. Our consultant recommends we use Activity-Based Costing to apply overhead to our products and suggests we use the following: Utilities overhead cost of $500,000 allocated on the basis of factory floor space: Standard uses 2,000 sq.ft. and Deluxe uses 3,000 sq. ft. Machine set-ups cost of $200,000 allocated on the basis of "runs" per year: Standard will have 12 runs and Deluxe will have 12 runs. Quality control costs of $300,000 allocated on the basis of parts per unit: Standard has 20 parts and Deluxe has 40 parts. If we make 300,000 Deluxe Units during the upcoming year and use Activity-Based Costing, how many more dollars in overhead will be allocated to each Deluxe Unit under Activity-Based Costing vs. Traditional Costing? (Express your answer in decimals, without dollar signs to increase the likelihood that Canvas gives you credit. "For example, if your answer is 25 cents more, you would type in .25.) Question 7 1 pts

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